Prices on the up amid hopes of Brexit deal

The FTSE 100 rose yesterday as housebuilders and other Uk-focused firms led the way, buoyed by a light at the end of Brexit negotiations.

The index closed 60.72 points higher to end the week at 7,247.08. UK banks and housebuilders led the way, with five companies on the FTSE 100 posting double-digit percentage growth.

The FTSE 250 – a better gauge of Brexit breakthroughs – closed up 805.99 points at 20,041.71, a 4.19% rise.

On Thursday, Prime Minister Boris Johnson and Irish Taoiseach Leo Varadkar said they had found a “pathway” to reach a Brexit deal.

The news also sent the pound soaring, hitting 1.281 against the dollar, an almost 2% rise on the day, and it rose 1.6% against the euro to 1.1483.

Markets are also looking forward to a meeting between US president Donald Trump and Chinese vice premier Liu He. David Madden, an analyst at CMC Markets, said: “Dealers are optimistic as Trump tweeted that ‘good things are happening’ at the trade talks.”

In Europe, Germany’s Dax was up 2.86% to 12,511.65 points while French index, the Cac, rose 1.73% to 5,665.48 points.

Oil ticked higher over the day as reports of an explosion on an Iranian oil tanker sparked fears of rising tensions in the Middle East. Brent crude was up 1.8% to 60.17 dollars per barrel.

Biggest risers on the FTSE 100 were Barratt Developments, up 67.6p at 654.4p; Persimmon, up 224p to 2,287p; and RBS, up 22.45p at 218.3p.

The biggest fallers were British American Tobacco, down 100p at 2,710p; and Diageo, down 111.5p at 3,210p.